Cost Savings:
Paying employees nonproductive time
Benefits (health insurance, sick leave, holiday pay)
Taxes (Medicare)
Increased Efficiency
To staff peak hours, days, periods for high demand
Lower demand, stop using
Advantages of Contingent Workers
Administrative savings
Lighten routine employee documentation
Remove service without firing
Better Job Security
“Core” employees feel secure when economic times get bad (contingent workers get fired first)
Recruiting Opportunities
Valuable base of workers
Opportunity to evaluate performance
Broad Talent Pool
Special projects of duration, particularly during seasonal projects
Flexibility
Maintaining and adjusting staffing levels
Increase staffing when needs are high and vice versa
5 Practical Risks of Contingent Workers:
Decreased loyalty and productivity
Independent contractors and temps less motivated
Less loyal , less productive, and lower quality
Status
Treated as “second-class citizens”
Feelings unrecognized or rewarded
5 Practical Risks Contingent Workers
Impact of Employees
Reduction in force and hired contingent worker
Robbing overtime
Confidentiality
No guarantee contingent workers won’t move to competitors
Increased training cost
Higher turnover rates which leads to higher training cost
Video
Video on Contingent Workers
Vendors
Companies can choose vendors to supply contingent workers
Or hire employee to handle the contingent workforce of the company
Liabilities
Lots of regulations and legal actions regarding contingent workers
Final Opinion
Use contingent workers, but hire with care!
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